BusinessMirror December 24-25, 2020

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SSS defends hike in monthly contribution By Bernadette D. Nicolas

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ESPITE opposition from employers and labor groups, the government defended its move to push through next year with the hike in the monthly contribution of members of the Social Security System (SSS), saying not doing so will imperil the long-term viability of the pension fund. In a statement, Finance Secretary and Social Security Commission Chairman Carlos G. Dominguez III said the move was necessary so as to expand the coverage of the SSS Fund and to provide more and higher benefits for its current and future members and their beneficiaries. Dominguez also said the restructuring of the SSS contribution rate and other reforms set

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under Republic Act 11199 or the Social Security Act of 2018 will offset the financial impact on the SSS Fund of the P1,000 increase in the monthly pension of all memberpensioners that was implemented in 2017. “Any drop in collections may lead to cash flow and liquidity issues. This could endanger the SSS’ ability to provide its members and their beneficiaries with benefits and loan privileges,” Dominguez said. Beginning January 2021, SSS is set to hike the monthly contribution rate by one percentage point to 13 percent from the current 12 percent of their respective salaries, but not to exceed the prescribed maximum monthly salary credit (MSC). With the one-percentagepoint increase in the monthly contribution rate to 13 percent, the

employers’ share would be 8.5 percent while the remaining 4.5 percent would be shouldered by the employees themselves. This shall be applicable to employed members, land-based OFW members in countries with bilateral labor agreements with the Philippines, and sea-based overseas Filipino workers members. Aside from the hike in the monthly contribution rate, there will also be an increase in the minimum and maximum MSC in 2021. The minimum MSC will be raised to P3,000 from P2,000 (except for Kasambahay and OFW members whose minimum MSC will remain at P1,000 and P8,000, respectively), while the maximum MSC will be at P25,000 from P20,000. The MSC is the determining factor for contributions and ben-

efits, which is based on the member’s monthly earnings. In a separate press briefing on Wednesday, SSS President and Chief Executive Officer Aurora C. Ignacio argued that the contribution rate was only increased four times from 1980 to 2016, while pension increases were made 22 times. In 2017, she added an additional monthly benefit was implemented for all pensioners “without a corresponding adjustment in the contribution rate, which caused the reduction in the SSS Fund life by 10 years.” As for the second half of the P2,000 pension increase amounting to P1,000, Ignacio reiterated the need to study this further, especially considering that SSS collections were also affected by the pandemic.

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Thursday-Friday, December 24-25, 2020 Vol. 16 No. 78

By Bernadette D. Nicolas

MINING NEEDS POLICY LIFT AS NICKEL BOOM SEEN IN FOCUS ON R.E., E-VEHICLES

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HE country’s budget gap from January to November this year breached the P1-trillion mark on the back of increased government spending despite the revenue drop amid the Covid-19 pandemic.

By Jovee Marie N. Dela Cruz

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Latest data from the Bureau of the Treasury (BTr) showed the budget deficit for the 11-month period reached P1.069 trillion, more than twice last year’s P409.1 billion. This is also equivalent to 77.5 percent of the government’s revised full-year projected deficit of P1.38 trillion. As the Covid-19 pandemic took its toll on the economy, the government was forced to spend more this year despite suffering a decline in revenues. For November alone, the national government’s budget shortfall swelled to P128.3 billion, equivalent to twice as much as the P60.9 billion recorded in the same month in 2019. From January to November, state revenues slid by 9.56 percent to P2.62 trillion from P2.89 trillion in the same period last year. Despite this, the BTr said this already exceeded the P2.52-trillion revised fullyear target by 4 percent. As of end-November, the BIR collected a total of P1.788 trillion. While the BIR already exceeded its revised full-year program of P1.686 trillion by 6 percent, this is still 11.19 percent lower than the 11-month tally in 2019 of P2.013 trillion.

Customs take MEANWHILE, the Bureau of Customs revenue take for the same period also dropped by 14.84 percent to P492.3 billion from last year’s P578.1 billion. The BOC has already reached 97 percent of its revised fullyear target of P506.2 billion. Continued on A2

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HE chairman of the House Committee on Ways and Means has called for clarity in the country’s mining policies and laws that encourage domestic value-added as nickel is poised to create 1.3 million jobs—a key driver of economic recovery postCovid pandemic. In a policy outline titled, “The Future in Nickel,” Albay Rep. Joey Sarte Salceda underscored the country’s prospects as a top base and source for renewable energy and electric vehicle manufacturing. According to Salceda, the Philippines could become a “world power” in renewable energy and electric cars. “The Philippines is a top producer of nickel. The future of electric vehicles and renewable is nickel, because it is the missing link to one long-standing problem: How do you stabilize batteries so that they last long enough and can store large amounts of energy?” Salceda said. “In the past, renewable energy was not always relied upon because of fluctuations in supply. When there’s no wind, there is little wind-powered energy supply. Solar energy requires consistent sunlight, and so on,” he added. With powerful battery technology, driven by nickel and cobalt—another Philippine product—renewable energy can be stored better, so that fluctuations are managed, the lawmaker said. “In other words, we now have the power and the prospects to create millions of jobs in renewable energy, battery manufacturing, sustainable mining, and related sectors. This will be a key driver of economic recovery post-Covid, but we have to be very wise with our policies,” Salceda said. Over the next 10 years, the House leader added, some 1.3 million jobs await the country in nickel-related industries. See “Mining,” A2

THE pandemic-induced crisis is no excuse for big-hearted Anton Velasco, 52, to refuse lodging for Man’s best friend—eight of them—on the tricycle he and his son use whenever they gather recyclable materials in Manila. His eight dogs—some he found on the street and adopted—live with them and stay with them whenever they scour for recyclables to sell. Asked if he doesn’t have a problem feeding so many furry friends despite his meager income, Anton shrugs. They’re friends, after all, and friends take care of each other. NONIE REYES

Ban on flights to, from UK strands OFWs By Recto L. Mercene

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LAG carrier Philippine Airlines (PAL) suspended flights to and from London until the end of February 2021, in compliance with the Interagency Task Force on Emerging Infectious Diseases (IATF) order restricting inbound travel from the UK beginning December 24 until December 31, 2020. Before this latest IATF Resolution, PAL had been serving the Manila-London-Manila route once a week. Meanwhile, the closure of the UK to international flights has suspended the de-

parture of Filipino nurses and caregivers, as England was struck by a new strain of Covid-19, which is running out of control, according to Prime Minister Boris Johnson. Forty other countries across the world have also banned flights going into the UK, including France, which sealed all its borders with the UK and banned all land, sea and air routes to that country. However, the ban is temporary but will depend on the number of measures the UK government is taking to control the new virus with a Tier 4 lockdown on many parts of the UK. Thousands of overseas Filipino work-

PESO EXCHANGE RATES n US 48.0910

ers (OFWs) are also affected by the ban by Saudi Arabia on all international flights to the country, according to recruitment consultant Manny Geslani. He said OFWs scheduled to depart for Riyadh have been advised by the Philippine Overseas Labor Office (POLO Riyadh) to wait until the Saudi government lifts the ban. Many Balik-Manggagawa who were scheduled to leave for Manila for vacations or renewal of their contracts were also told to return to their jobsites, or their employers were asked to provide housing for the workers till the Saudi government lifts the ban, Geslani added.

Saudi Arabia banned all international flights and closed its borders over fears about the fast-spreading new strain of Covid-19, starting December 22, 2020. The closure will last one week. According to the Saudi Press Agency, the kingdom may extend the suspension for another week depending on the nature of the virus spread. The Saudi decision followed the UK warning that a new strain of the coronavirus is “out of control.” Other countries in the region like Kuwait have also followed the action of

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n JAPAN 0.4641 n UK 64.2688 n HK 6.2032 n CHINA 7.3501 n SINGAPORE 35.9990 n AUSTRALIA 36.1692 n EU 58.5027 n SAUDI ARABIA 12.8185

Source: BSP (December 23, 2020)


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